CAE Inc. provides training, simulation, and critical operation solutions across Canada, the United States, the United Kingdom, Europe, Asia, Oceania, Africa, and the rest of the Americas. It operates in two segments: Civil Aviation and Defense and Security. The Civil Aviation segment offers training for flight, cabin, maintenance, and ground personnel, as well as air traffic controllers; flight simulation training devices; ab initio pilot training and crew sourcing; and digital solutions for airlines and other aviation organizations. The Defense and Security segment delivers training and simulation solutions to defense forces, OEMs, government agencies, and public safety organizations. Formerly CAE Industries Ltd., the company changed its name to CAE Inc. in 1993, was incorporated in 1947, and is headquartered in Saint-Laurent, Canada.
CAE Signs Drone Training MoU With Poland's WB Electronics
CAE signed a memorandum of understanding with Polish defense technology company WB Electronics on September 8 at the MSPO 2026 exhibition in Kielce, Poland, pairing CAE's simulation and synthetic training expertise with WB Electronics' unmanned and autonomous platforms to train operators for defense forces in Canada, Poland, and allied nations. The deal followed CAE's August 12 report of its Q1 fiscal 2027 quarter, in which Defense revenue climbed 8.3% year over year to $531.8 million and adjusted segment operating income margin ticked up to 9.5% from 9.4%, while consolidated revenue rose 6.8% to $1,173.4 million and free cash flow swung to a positive $104.0 million from negative $134.7 million a year earlier. Operating income fell 35.1% to $86.8 million on $48.3 million in restructuring costs, and earnings per share dropped to $0.10 from $0.18, with Civil's adjusted segment operating income margin falling to 16.5% from 20.2%. Defense order intake fell 26.1% year over year to $451.9 million, pushing the quarter's book-to-sales ratio to 0.85 times, and management's fiscal 2027 outlook calls for Civil revenue to be flat to slightly down. CAE repurchased and cancelled 1,107,279 shares for $39.0 million during the quarter and is pursuing a transformation plan targeting $125 million to $150 million in annual run-rate savings by fiscal 2030, with total charges expected to reach $200 million to $250 million.
Defense & Geopolitical Fragmentation › Autonomous Systems & Counter-Drone Demand
Robotics & Physical AI › Civil Drones & UAV Demand
Defense & Geopolitical Fragmentation › Defense Primes — Europe & Asia Demand
CAE · Capital · Negative Q1 fiscal 2027 showed operating income down 35.1% on restructuring costs, EPS fell to $0.10, Civil margin dropped to 16.5%, and defense order intake fell 26.1%.
CAE · Demand · Positive CAE signed an MoU with WB Electronics to pair its simulation/synthetic training with unmanned platforms for defense operators in Canada, Poland, and allies.
WB Electronics · Demand · Positive WB Electronics' unmanned and autonomous platforms are being paired with CAE training under the MoU to serve defense forces in Canada, Poland, and allied nations.
CAE and WB Electronics sign MoU to advance unmanned systems training
CAE and WB Electronics have signed a Memorandum of Understanding at MSPO 2026 to explore joint opportunities in unmanned and autonomous systems training and readiness, strengthening defence cooperation between Canada and Poland. The agreement combines CAE's expertise in simulation and synthetic training with WB Electronics' advanced unmanned platforms and mission systems. The collaboration aims to help defence forces in Canada, Poland, and allied nations train operators and enhance operational effectiveness. The signing was attended by Polish and Canadian government officials, including Defence Minister David J. McGuinty and Trade Minister Maninder Sidhu.
Defense & Geopolitical Fragmentation › Autonomous Systems & Counter-Drone Competition
CAE · Demand · Positive CAE signed an MoU with WB Electronics to jointly pursue unmanned/autonomous systems training opportunities for defence forces in Canada, Poland, and allied nations.
WB Electronics · Demand · Positive WB Electronics signed an MoU with CAE to explore joint training opportunities combining its unmanned platforms with CAE's simulation expertise.
United Airlines Completes First Phase of Pilot Training Facility Expansion
United Airlines has completed the first phase of expansion at its pilot training facility in Denver, adding 40 new CAE training devices since 2022. The facility now has 86 CAE training devices, including 52 full-motion flight simulators and 34 fixed training devices, and can train up to 860 pilots per day. Phase two of the expansion is set to begin next year and is expected to be operational by 2030. United has invested $370 million in the Flight Training Center since 2016 and nearly $1 billion in Denver since 2021.
CAE reported first quarter fiscal 2027 revenue of $1,173.4 million, up 6.8% from $1,098.6 million a year earlier, while adjusted EPS was flat at $0.26. Operating income fell to $86.8 million from $133.8 million, and adjusted segment operating income declined 7.5% to $156.6 million. Civil revenue rose 5.6% to $641.6 million but adjusted segment operating income dropped 13.7% to $106.1 million, while Defense revenue grew 8.3% to $531.8 million and adjusted segment operating income increased 9.1% to $50.5 million. Free cash flow was $104.0 million compared with negative $134.7 million in the prior year, and net debt-to-adjusted EBITDA improved to 2.27 times from 2.75 times. The company said its fiscal 2027 outlook remains unchanged, with adjusted EPS expected between $1.21 and $1.28 and adjusted segment operating income margin of 14.6% to 15.1%.
Flight Simulator Market to Reach USD 9.77 Billion by 2031, Growing at 8.0% CAGR
The global flight simulator market is projected to grow from USD 6.65 billion in 2026 to USD 9.77 billion by 2031, at a compound annual growth rate of 8.0%, according to a new report by MarketsandMarkets. The market was valued at USD 6.22 billion in 2025. Full flight simulators are estimated to account for 64.2% of the market in 2026, while the software segment is expected to register the highest CAGR of 9.7%. The Middle East is projected to be the fastest-growing region, driven by fleet expansion and new training centers in countries such as the UAE, Saudi Arabia, and Turkey. Key players include CAE Inc., FlightSafety International, Thales, Airbus, and TRU Simulation + Training Inc.
CAE · Demand · Positive CAE is a key player in the growing flight simulator market, projected to reach $9.77B by 2031 at 8% CAGR.
AIR.PA · Demand · Positive Airbus is a key player in the growing flight simulator market, benefiting from fleet expansion and training demand.
HO.PA · Demand · Positive Thales is a key player in the growing flight simulator market, with software segment expected to grow at 9.7% CAGR.
FlightSafety International · Demand · Positive FlightSafety International is a key player in the growing flight simulator market, driven by fleet expansion.
TRU Simulation + Training Inc. · Demand · Positive TRU Simulation + Training Inc. is a key player in the growing flight simulator market, benefiting from new training centers.
Morgan Stanley stays bullish on aerospace and defense ahead of Q2 earnings
Morgan Stanley maintained a constructive outlook on the aerospace and defense sector ahead of second-quarter earnings, citing resilient commercial aerospace demand, improving aircraft production, and favorable long-term defense spending trends, while becoming more selective after recent stock volatility and valuation shifts. The brokerage reiterated positive views on commercial aerospace, defense, and space, highlighting durable aftermarket demand driven by sustained fleet utilization, low aircraft retirement rates, constrained maintenance capacity, and continued engine maintenance needs. It also said Boeing's production recovery is gaining momentum, with the 737 MAX running at 47 aircraft per month and further certification milestones expected to support the commercial aerospace outlook. In defense, Morgan Stanley said investors continue to underestimate the likelihood of a roughly $1.1 trillion U.S. fiscal 2027 base defense budget, arguing that supply-chain improvements and expanding missile production capacity should provide further upside for the sector. The firm also expects space companies to benefit from upcoming launch milestones, improving order trends, and NASA's commercial International Space Station procurement. Reflecting changing valuations rather than weakening fundamentals, Morgan Stanley downgraded Loar Holdings and TransDigm to Equal-weight, while cutting CAE and Voyager Technologies to Underweight. At the same time, it named FTAI Aviation as its top commercial aerospace pick, Northrop Grumman as its preferred defense stock, and HawkEye 360 as its top space investment. The brokerage also revised several price targets, lowering targets for companies including Honeywell Aerospace, VSE, Textron, StandardAero, Loar, and TransDigm, while raising targets for Heico, Curtiss-Wright, and Moog. It said the expanding universe of publicly traded aerospace and defense companies has increased investment opportunities but also requires greater selectivity.
FTAI · Demand · Positive Named top commercial aerospace pick by Morgan Stanley, citing resilient aftermarket demand.
NOC · Demand · Positive Morgan Stanley names Northrop Grumman as its preferred defense stock, citing favorable long-term defense spending trends and supply-chain improvements.
CAE · Capital · Negative Morgan Stanley downgraded CAE to Underweight, reflecting valuation concerns.
HAWK · Demand · Positive Named as top space investment; expected to benefit from launch milestones and improving order trends.
LOAR · Capital · Negative Downgraded to Equal-weight and price target lowered by Morgan Stanley.
TDG · Capital · Negative Morgan Stanley downgraded TransDigm to Equal-weight and lowered its price target, citing valuation shifts.
CAE to transfer U.S. stock exchange listing to Nasdaq
CAE will voluntarily transfer its U.S. stock exchange listing from the New York Stock Exchange to the Nasdaq Global Select Market. The move aligns with the company's transformation plan and its focus on operational efficiency and market positioning as a global leader in simulation, training, and mission-critical solutions. Trading on the NYSE is expected to end on Wednesday, July 22, 2026, with Nasdaq trading commencing the following day, Thursday, July 23, 2026. CAE's listing on the Toronto Stock Exchange will not be affected, and its common shares will continue to trade under the ticker symbol "CAE" on both the TSX and Nasdaq.
CAE named to TIME's World's Most Sustainable Companies 2026 list
CAE has been included in the third edition of the World's Most Sustainable Companies 2026 ranking by TIME and Statista. The list, announced on June 23, 2026, recognizes the top 750 companies out of over 5,800 assessed based on more than 20 sustainability key performance indicators including emissions, compliance with international reporting standards, and commitment to goals. CAE's Chief People and Sustainability Officer Hélène V. Gagnon said the recognition reflects the company's progress on climate transition, strengthened disclosures, increased use of renewable electricity, and deeper integration of sustainability into business decisions.
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